Retail Interest in Crypto Remains Strong Despite the Turmoil of 2022

[ad_1]

Editor’s Note: With such volatility in the markets, stay up to date with daily news! Get our quick roundup of today’s must-see news and expert opinion in minutes. Register here!

(Kitco News) – It’s been a disastrous year for the cryptocurrency market as more than $2 trillion in value has evaporated from the total crypto market capitalization, but that hasn’t deterred retail investors. to invest and hold cryptos for the long term.

According to the Accentures 2022 Global Consumer Payments Report, one in five respondents claimed to own cryptocurrencies, with 28% of this group indicating that they purchased crypto as a long-term investment. Other reasons to buy crypto include curiosity (22%), short-term trading/speculation (21%), access to an alternative payment method (17%) and 12% said the use for cross-border payments.

The survey included 16,000 customers in 13 countries across Asia, Europe, Latin America and North America in August and September 2022.

According to the survey, payments are one of the fastest growing avenues for crypto adoption as the use of digital wallets is on the rise. While traditional payment methods such as cash, debit and credit cards remain the dominant form of consumer payment, next-gen options such as digital wallets and crypto are beginning to gain traction.

Currently, 9% of consumers indicated that they use next-generation payment methods as their primary means of payment for face-to-face transactions, but this number is expected to increase to 20% by 2025.

Adoption is particularly high among consumers in the Asia-Pacific region who use digital wallets for small purchases at a higher rate than in other regions. Digital wallets act more as a bridge to the crypto world, as 75% of them are linked to a credit or debit card and use traditional card rails.

A total of 56% of respondents use digital wallets more than five times per month, compared to 48% who said they use their credit card often.

Nearly a third (31%) of respondents who use credit cards as their primary method of payment for in-person purchases are currently considering switching to other payment methods. Half would choose cash or debit payments in an effort to reduce interest charges. Meanwhile, 9% said they would choose a digital wallet and 4% chose crypto.

Regarding the use of central bank digital currencies (CBDCs), the report suggests that a lack of standardization and the complexity of harmonizing regulations across jurisdictions may hinder the use of CBDCs for cross-border transactions.

A startling statistic showed that 38% of respondents would consider using next-gen payment methods such as Buy Now, Pay Later (BNPL) and crypto if provided by their primary bank, due to the high level confidence in banking institutions. This offers banks the opportunity to stay relevant by offering solutions that level the playing field with new entrants.

And on the topic of the metaverse, the survey found that 58% of consumers are afraid to transact in the metaverse because they don’t trust payment providers. But 50% would be more comfortable transacting in the metaverse if their primary bank facilitated the transaction. Only 23% of respondents said they trust crypto wallets to provide a secure environment for payments and purchases.

The top frustrations expressed by survey participants that drive them to explore other payment options include slow transactions, payment failures, and lack of merchant support for their preferred payment options.

Bitcoin HODLers Remain Strong

Further evidence pointing to the growing nature of retail crypto investors was provided by Reflexivity Research founder William Clemente, who posted the following tweet pointing out that Glassnode data shows that the percentage of Bitcoin (BTC) held by retail traders reached an all-time high of 17.%.

The percentage of Bitcoin supply held by retail has jumped to 17% this year.

Not perfect yet, but solid for a 12 year old asset and definitely heading in the right direction.

Bitcoin’s supply scatters over time, while Fiat’s holder base concentrates on whales over time. pic.twitter.com/ipDbWVmcEl

— Will Clemente (@WClementeIII) December 20, 2022

Digging a little deeper into the data, the long-term hodler supply defined as holding in form for more than 180 days also hit a new all-time high of 13.9 million BTC this month, which equates roughly 72.3% of the total circulating supply. These metrics indicate that confidence in Bitcoin’s long-term prospects remains high despite the upheavals of 2022.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

[ad_2]